Mining companies lifted Canada's main stock index on Wednesday after gold prices gained as data showed inflation in October rose in line with the market and central bank expectations.
At 9:45 a.m. ET, the Toronto Stock Exchange's S&P/TSX composite index was up 23.97 points, or 0.11%, at 21,741.13.
Canada's annual inflation rate accelerated again in October to 4.7%, matching a February 2003 high, led by sharp rises in gasoline and housing prices, data showed, with analysts expecting more heat ahead.
"It's nice not to be looking at a significant upside surprise for once. It was largely as expected... But 4.7% year-on-year inflation is still quite strong inflation," said Andrew Kelvin, chief Canada strategist at TD Securities.
TSX drops as energy, material stocks fall
"This doesn't change anything for the Bank of Canada... You could say that they are actually falling short of where they expected to be in October in terms of momentum in the economy."
Gold prices gained on Wednesday as inflation worries boosted demand for the safe-haven metal. That helped the materials sector, which includes precious and base metals miners and fertilizer companies, post gains of nearly 1%.
The energy sector climbed 0.8%, shrugging off declines in crude prices, as Meg Energy, Arc Resources and Cenovus Energy gained between 1.3% and 2.3%.
HIGHLIGHTS
Shares of food subscription provider Goodfood Market slumped 31.3% to a 16-month low after it reported a fourth-quarter loss of 30 cents per share against estimates of a six cent loss, while its sales fell 5% during the quarter.
The TSX posted six new 52-week highs and one new low.
Across all Canadian issues there were 32 new 52-week highs and nine new lows, with total volume of 34.24 million shares.
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